Strategies for Effective Implementation of Complex Corporate Models

Abstract

Today I am going to outline a number of positions with respect to issues of implementation of corporate models, in particular complex corporate models. All of my personal experience stems from building “Systems Dynamics” models, that is models that you would historically identify with Forrester¹). Yet I would assert that these observations apply equally well to other types of large-scale modelling endeavors. My experience in development and use of complex models began in 1958, when I participated in the formation of the Industrial Dynamics Group at MIT. Since that time, both at MIT and in my private consulting company, our group has engaged in the development and application of large-scale feedback-oriented models for a wide variety of clients. To indicate some of the variety of systems dynamics model applica tions from which my conclusions regarding the implementation process are derived, I refer you to work on manufacturing management at Sprague Electric Company²) and Badger Meter Company³), efforts in the retailing field for a large Canadian food chain⁴), models of R & D management carried out at Dow Chemical Corporation⁵), a model of health center problems in New York City⁶), and a major analysis of the societal problem of heroin addiction in the United States⁷). For each of these published complex models there are many more unpublished works that provide further instances of attempted system dynamics implementation, including some successes and some failures.